k 4 Trez Company began operations this year. During this first year, the company produced 100,000 unts and sold 80000 units. The absorption costing income statement for this year follows. Sales (80,000 units $40 per unit $3,200, 000 Beginning inventory Cost of goods manufactured (100,000 units $20 per unit) Cost of good available for sale Ending inventory (20, oo0 $20) Cost of goods sold 2, 000,000 2,000,000 400,000 1, 600, 000 1, 600, 000 560,000 $1,040, 000 Gross margin Net income Additional Information o. Selling and administrative expenses consist of $400,000 in annual fixed expenses and $2 per unit in variable selling and administrative expenses b. The company's product cost of $20 per unit is computed as follows. Direct materials Direct labor Variable overhead Fixed overhead ($8o0, 000/100, 000 units) $5 per unit $3 per unit $4 per unit $8 per unit Required